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3.0% NAV return in November driven by private company valuation increases


14 December 2021

NB Private Equity (NBPE), the $1.5bn listed private equity investment company managed by Neuberger Berman, today releases its 30 November 2021 monthly NAV update.

Highlights (at 30 November 2021)

  • NAV per share of $31.34 (£23.69) - a 3.0% return in the month
  • YTD NAV total return of 43.3% at 30 November 2021
  • Performance in November driven by Q3 private company valuations
  • $29 million of realisations received in the month; YTD cash received from realisations of $313 million
  • No new investments in November. YTD invested or committed $183 million to ten new investments
  • Robust liquidity - $376 million of cash and undrawn credit line available
At 30 November 2021*YTD1 year3 years5 years10 years
NAV TR (USD)43.3%57.9%92.1%138.1%293.4%
MSCI World TR (USD)17.3%22.3%62.2%103.0%234.6%
      
Share price TR (GBP)57.0%74.1%80.5%124.3%479.0%
FTSE All-Share TR (GBP)13.0%17.4%16.9%30.6%103.0%

*Reflects cumulative returns over the time periods shown and are not annualised.

Peter von Lehe, Managing Director and Head of Investment Solutions and Strategy, Neuberger Berman commented:

“November was another excellent month for NBPE, with Q3 private company valuation increases adding $70 million to the portfolio. In addition, Autostore, the innovative robotic and software technology company which listed on the Oslo Stock Exchange in October, has continued to perform strongly, taking total year-to-date gains from this investment to $179 million.

“We have continued to build on our strong short- and long-term performance, reporting 2021 NAV growth of 43.3% year-to-date, significantly outperforming the MSCI World TR of 17.3%. Our share price has continued to significantly outperform the FTSE All-Share, and we have been the best performing company in the Association of Investment Companies’ Private Equity sector this year, as well as ranking in the top 10 for performance across all AIC sectors in 2021 year-to-date.1”

Paul Daggett, Managing Director of Neuberger Berman added:

“Portfolio realisations continue at record levels, with almost $400 million of exits announced so far in 2021. These realisations have been at significant total uplifts to carrying value and cost, underlining the quality of the companies in our portfolio and the benefit of our investment approach.

“We continue to have a meaningful investment bias towards growth companies, with an exciting pipeline of new investments. We have committed $183m to 10 transactions so far in 2021, with a heavy weighting to companies which are expected to experience either low cyclicality or long-term secular growth drivers, including investments in software, technology and IT services.”

Business review (at30 November 2021)

NBPE has continued to build on its strong performance, with NAV increasing to $1.5 billion ($31.34 per share) a 43% total return year to date

  • After incorporating third quarter private company valuation information
    • 30 September 2021 NAV per share was $31.10, a $134 million, or $2.86 per share, increase relative to 30 June 20212
    • $70 million of gains from private valuations in Q33; largest write ups were Autostore (OB.AUTO), following its successful IPO, and Kroll, which has been written up as a result of continued strong performance
    • $40 million paid in dividends and expenses, in addition to fee accruals, ZDP accruals and credit facility expenses in Q3
  • Since September 2021:
    • Additional $16 million, or $0.34 per share, increase in October and November 20214 attributable to changes in public company valuations, FX rates and interest accruals
    • $5 million of expenses, or $0.10 per share, attributable to fee accruals, ZDP accrual and credit facility expenses during October and November 20215

Realisations from the portfolio continue at a record level for the year with continued momentum; 14 full and partial realisations YTD at an aggregate 84% uplift to carrying value at 31 December 2020 and a 3.4x multiple of cost

  • $399 million of total announced realisations YTD
    • $34 million of realisations announced in November
    • Two companies, FinalSite and Compliance Solutions Strategies, each announced sales to a financial and strategic buyer, respectively. Both transactions are expected to close by the end of 2021.6 In addition, NBPE expects to receive additional proceeds from a partial exit of an existing portfolio company.7
  • $29 million of cash proceeds received in November
    • Proceeds include cash received from the sale of Hivory and additional proceeds from sale of Autostore stock
  • $313 million of proceeds received year to date, with a further $86 million expected in the coming months, as the remaining transactions close
  • The 30 November 2021 NAV estimate incorporates the majority of the valuation uplift associated with these announced realisations; however, NBPE expects an additional $6 million of uplift in the coming months related to the announced transactions which are yet to close

Continued focus on investing in companies expected to benefit from long term growth trends

  • $183 million invested or committed to ten companies YTD, and a continued strong pipeline of further new investments

Robust liquidity

  • $376 million of available liquidity ($76 million cash, $300 million of undrawn credit line)
    • Adjusted unfunded commitments of $85 million and a 462% adjusted commitment coverage
  • An additional $86 million is expected from announced realisations in the coming months as transactions close

Credit Facility Rating Upgraded to A

On 7 December 2021, Kroll Bond Rating Agency (“KBRA”) announced it upgraded its rating on NBPE’s Senior Secured Revolving Credit Facility to A from A-. KBRA’s rating reflected the following credit considerations: 1) asset coverage in excess of 500% 2) the transaction structure of the facility 3) a healthy cash flow profile 4) NBPE’s successful track record and 5) the liquidity profile of NBPE’s private equity exposure.  

Portfolio Valuation

The value of NBPE’s portfolio as of 30 November 2021 was based on the following information:

  • 23% of the portfolio fair value was valued as of 30 November 2021
    • 21% in public securities
    • 2% in private direct investments
  • 2% of the portfolio fair value was valued as of 31 October 2021
    • 2% in private direct investments
  • 75% of the portfolio fair value was valued as of 30 September 2021
    • 74% in private direct investments
    • 1% in fund investments

Investor Call

NB Private Equity Partners Limited (“NBPE” or the “Company”) today announced that an investor update will be held on Tuesday 14 December 2021 via Zoom in order to discuss the investment portfolio and provide an update on performance.

The webinar will take place at 14.00 GMT / 15.00 CST / 9.00 EST. The call can be accessed via the Zoom call details below:
Join from a PC, Mac, iPad, iPhone or Android device:
Please click the link below to join the webinar:
https://nb.zoom.us/j/92878438044?pwd=a2FHY1V5dUFNVG1mNm1oL3MyTS9Qdz09
Passcode: 296895
Webinar ID: 928 7843 8044

Or Telephone:
    Dial(for higher quality, dial a number based on your current location):
        US: +1 646 518 9805  or +1 646 558 8656  or +1 669 900 6833
        United Kingdom: +44 131 460 1196  or +44 203 481 5237
        Hong Kong SAR: +852 3012 6283  or +852 5803 3730  or +852 5803 3731  or +852 5808 6088
        Japan: +81 363 628 317
        China: +86 10 5387 6330  or +86 10 8783 3177
    International numbers available: https://nb.zoom.us/u/a2p6YEkoU

The webinar will be recorded and available for playback on NBPE’s website following the meeting.
An updated investor presentation will be available on NBPE’s website at http://www.nbprivateequitypartners.com/.

For further information, please contact:

NBPE Investor Relations        +1 214 647 9593

Kaso Legg Communications        +44 (0)20 3995 6673

Charles Gorman        nbpe@kl-communications.com
Will Sanderson

About NB Private Equity Partners Limited
NBPE invests in direct private equity investments alongside market leading private equity firms globally. NB Alternatives Advisers LLC (the “Investment Manager”), an indirect wholly owned subsidiary of Neuberger Berman Group LLC, is responsible for sourcing, execution and management of NBPE. The vast majority of direct investments are made with no management fee / no carried interest payable to third-party GPs, offering greater fee efficiency than other listed private equity companies. NBPE seeks capital appreciation through growth in net asset value over time while paying a bi-annual dividend.

LEI number: 213800UJH93NH8IOFQ77
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,400 professionals. For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $437 billion in client assets as of September 30, 2021. For more information, please visit our website at www.nb.com.


This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security.

NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE has received the necessary consent of the Guernsey Financial Services Commission. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. This document is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of NBPE's investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this document contains "forward-looking statements." Actual events or results or the actual performance of NBPE may differ materially from those reflected or contemplated in such targets or forward-looking statements.


1 As at 30 November 2021.
2 Increase includes $0.41 per share dividend in August 2021.
3 4.6% uplift of 30 September 2021 final valuations vs the originally issued 30 September 2021 monthly NAV estimate.
4 $18 million ($0.36 per share) in October 2021 and negative $2 million ($0.04 per share) in November 2021.
5 $5 million ($0.09 per share) in October 2021 and $0 million ($0.00 per share) in November 2021 (expenses were offset by a reduction in the ZDP liability due to changes in FX rates).
6 Subject to customary closing conditions; no assurances can be given the transactions above close.
7 Undisclosed company for confidentiality reasons.

Attachments

  • NBPE November 2021 FactsheetvF
  • NBPE Investor Presentation - December 2021 vF

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